Moody’s Analytics sees India's GDP expanding by 6.1% in 2024, says inflation in India at the opposite extreme: Report

Moody's Analytics has estimated India's economy to expand by 6.1% in 2024, down from the 7.7% growth registered in 2023, a report stated.

"Economies in South and Southeast Asia will see some of the strongest output gains this year, but their performance is flattered by a delayed post-pandemic rebound. We expect India's GDP to grow 6.1% in 2024 after 7.7% last year," Moody's Analytics said according to the report.

India's output remains 4% lower than it would have been without the Covid-19 pandemic and its aftermaths, including supply disruptions and military conflicts abroad, it said.

The report titled ‘APAC Outlook: Listening Through the Noise' also pointed towards uncertainties for China and India as far as inflation is concerned. "Inflation in India is at the opposite extreme, with recent consumer price inflation rates hovering around 5%, close to the upper end of the Reserve Bank of India's target range of 2 to 6% and without clear evidence of a trend towards slowing price pressures," Moody’s said as per the report.

It also said that the APAC (Asia-Pacific) region is faring relatively well compared to the rest of the world. The report projects 3.8% growth for the APAC economy in 2024 as compared to the global economy's 2.5% growth.

Moody's Analytics observed that both India and the Southeast Asia have experienced significant output losses compared to their pre-pandemic trajectories and their recovery is still in its early stages, the report pointed out.

Earlier, the Asian Development Bank (ADB) projected India’s GDP to grow at 7% for the fiscal year 2024 (FY24) and 7.2% in FY25 and said inflation is expected to ease in the coming times.

In its April outlook, ADB said growth will be driven primarily by robust investment demand and improving consumption demand while inflation will continue its downward trend in tandem with global trends.